Medical Properties Trust acquires real estate of three inpatient rehabilitation hospitals in Texas

Medical Properties Trust, Inc. (NYSE: MPW) announced today that it has acquired the real estate of three inpatient rehabilitation hospitals in Texas for an aggregate purchase price of $74 million. The facilities, which are located in the Houston, Dallas and Austin metropolitan areas, are operated by and leased to affiliates of Reliant Healthcare Partners.

“We are excited to begin a relationship with Reliant Healthcare, who operates hospitals that are state-of-the-art and located in excellent markets”

The leases, which have initial terms expiring in 2033, provide for initial cash returns of 9.7% and periodic escalation of up to 1.67% on an annualized basis. Each lease may, subject to conditions, be renewed by the operator for two terms of 10 years each.

"We are excited to begin a relationship with Reliant Healthcare, who operates hospitals that are state-of-the-art and located in excellent markets," said Edward K. Aldag, Jr., MPT's Chairman, President and CEO. "We are already exploring opportunities to finance additional Reliant hospitals, which when considered with other properties in our acquisition pipeline, reaffirm our optimism about strong growth in our property portfolio."